Bank Interview Questions

Q:

Which best describes the difference between stocks and bonds?

A) stocks allow investors to own a portion of the company; bonds are loans to the company B) stocks are more reliable investment;bonds tend to be more volatile
C) stocks allow investors to share in profits;bonds make investors responsible for company debts D) stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year
 
Answer & Explanation Answer: B) stocks are more reliable investment;bonds tend to be more volatile

Explanation:
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Q:

A decline in the real interest rate will

A) shift the investment schedule downward B) shift the investment schedule leftward
C) increase the amount of investment spending D) None of the above
 
Answer & Explanation Answer: C) increase the amount of investment spending

Explanation:

The real interest rate is the percentage increase in purchasing power that the lender receives on a loan. A decline in the real interest rate will increase the amount of investment spending.

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Q:

Which investment type typically carries the least risk?

A) Mutual funds B) Treasury bonds
C) Savings account D) Individual stocks
 
Answer & Explanation Answer: C) Savings account

Explanation:

Different types of risk exist in ivesting schemes depending on what you've invested in.

 

Savings accounts are generally regarded as the least risky investments as in this we just save our wealth for future expenses.

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Q:

In recording an accounting transaction in a double-entry system

A) there must always be entries made on both sides of the accounting equation. B) the amount of the debits must equal the amount of the credits.
C) there must only be two accounts affected by any transaction. D) the number of debit accounts must equal the number of credit accounts.
 
Answer & Explanation Answer: B) the amount of the debits must equal the amount of the credits.

Explanation:
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0 1422
Q:

The income and substitution effects account for

A) the upward sloping curve B) the downward sloping curve
C) Both A & B D) None of the above
 
Answer & Explanation Answer: B) the downward sloping curve

Explanation:
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1 1411
Q:

Transfer payments are included in

A) Government subsidies B) GDP
C) Both A & B D) None of the above
 
Answer & Explanation Answer: A) Government subsidies

Explanation:

Transfer payments are included in GDP and not in GDP.

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1 1391
Q:

In a fractional reserve banking system

A) bank accepts deposits B) bank accepts some loans
C) bank has some cash reserves D) All the above
 
Answer & Explanation Answer: D) All the above

Explanation:

Fractional reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Fractional reserve banking is a banking system in which only a fraction of bank deposits are backed by actual cash on hand and are available for withdrawal. This is done to expand the economy by freeing up capital that can be loaned out to other parties.

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Q:

Purchase return and allowances is a contra account

A) TRUE B) FALSE
Answer & Explanation Answer: A) TRUE

Explanation:

Purchase return and allowances is a contra account to purchases.

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Subject: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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